Indie outfit A24 has landed an equity investment of $225 million, which will be used to expand the Moonlight and Euphoria outfit’s production and distribution.
Stripes serves as the lead investor for the round, with the investment group holding less than 10 percent of the company, placing A24’s valuation above $2.5 billion. Stripes’ founder, Ken Fox, will join A24’s board. Neuberger Berman, on behalf of client funds, co-led a group of investors in the round.
This equity marks the first raise for the company since initial seed funding by Eldridge, which remains a minority stakeholder. A24 has long been at the center of sales speculations as entertainment companies continue to garner hefty price tags. Kevin Mayer and Tom Staggs’ Candle Media acquired Reese Witherspoon’s Hello Sunshine ($900 million) and kids’ content giant Moonbug ($3 billion) and invested in Jada Pinkett-Smith and Will Smith’s Westbrook Inc. Elsewhere, Apollo Funds took a minority stake in Legendary Entertainment for $760 million.
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“A24 is a world-class brand and an extraordinary business,” said Fox. “We’ve built a relationship with the A24 team over many years and have been amazed by the breadth and impact of their iconic storytelling globally. A24 is synonymous with incredible content and it is a prime example of Stripes’ belief in partnering with founders who are building amazing products. We are thrilled to work with A24 in their next phase of growth.”
Added Raman Gambhir, portfolio manager at Neuberger Berman, “A24 has established an unparalleled culture — one that puts their creators first. The authenticity of their brand provides all A24 stakeholders with a long runway for success. It’s truly a privilege to partner with this remarkable management team as they execute on their long-term strategic vision.”
A24’s upcoming slate includes Everything Everywhere All at Once, which will be opening the SXSW film festival, and Alex Garland’s Men. Recently, the company tapped former BBC executives Rose Garnett and Piers Wenger to oversee its international film and TV slate.
Goldman Sachs & Co. advised on the transaction alongside Latham & Watkins.
